IWY vs. IWO: IWY Goes Heavy on Big Tech, While IWO Focuses on Small Caps. Is Either One a Must-Own ETF?

2 hours ago 2

Jake Lerch, The Motley Fool

Sat, January 17, 2026 astatine 12:45 PM CST 6 min read

IWY tilts heavy toward exertion mega-caps, portion IWO offers broader small-cap maturation exposure
IWO carries higher volatility and a steeper humanities drawdown, and holds astir 10 times the fig of stocks arsenic IWY
IWY charges a somewhat little disbursal ratio and has a marginally little yield
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The iShares Russell Top 200 Growth ETF (NYSEMKT:IWY) focuses connected large-cap U.S. maturation stocks and charges a somewhat little disbursal ratio than the small-cap-oriented iShares Russell 2000 Growth ETF (NYSEMKT:IWO), which offers broader diversification but with higher volatility and risk.

Both IWY and IWO way U.S. maturation equities, but with sharply antithetic approaches: IWY concentrates connected the largest 200 companies, portion IWO targets smaller, faster-growing firms. This examination highlights however these choices impact risk, returns, diversification, and costs for investors considering growth-focused exchange-traded funds (ETFs).

Metric

IWO

IWY

Issuer	IShares	IShares
Expense ratio	0.24%	0.20%
1-yr instrumentality (as of 2026-01-09)	20.2%	19.4%
Dividend yield	0.5%	0.4%
Beta	1.17	1.12
AUM	$14.1 billion	$16.1 billion

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year play returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

IWY looks a spot much affordable with a 0.20% disbursal ratio, compared to IWO’s 0.24%. IWO offers a somewhat higher yield, but the quality is insignificant astatine conscionable 0.1 percent point.

Metric

IWO

IWY

Max drawdown (5 y)	-42.02%	-32.68%
Growth of $1,000 implicit 5 years	$1,131	$2,102

IWY packs successful conscionable 110 holdings, with a pronounced tilt toward technology: 66% of assets onshore successful that sector, and the apical 3 positions—Nvidia Corp (NASDAQ:NVDA), Apple Inc (NASDAQ:AAPL), and Microsoft Corp (NASDAQ:MSFT)—account for a combined 37.41% of the portfolio. The fund’s property of implicit 16 years signals a agelong way record, but its attraction means show rides heavy connected a fistful of mega-caps.

By contrast, IWO offers vulnerability to much than 1,000 small-cap maturation stocks, spreading assets crossed healthcare, technology, and industrials. Its largest positions—Bloom Energy Class A Corp (NYSE:BE), Credo Technology Group Holding Ltd (NASDAQ:CRDO), and Kratos Defense And Security Solutions (NASDAQ:KTOS)—are overmuch smaller weights, resulting successful little single-stock hazard but higher volatility and deeper humanities drawdowns. Both funds debar leverage, currency hedges, oregon different structural quirks.